What change regarding FHA's Annual Mortgage Insurance Premium (MIP) occurred after June 3, 2013?

The choice indicating that MIP cannot be removed for loans above 90% of the appraised value is correct because, following the changes implemented after June 3, 2013, borrowers who took out FHA loans with a Loan-to-Value (LTV) ratio greater than 90% are required to pay Annual Mortgage Insurance Premium (MIP) for the life of the loan. This policy means that regardless of how long the borrower maintains their loan or their equity position, they are not eligible to have their MIP removed as long as their original loan amount was over 90% of the appraised value.

This rule contrasts with earlier FHA guidelines where MIP could have been canceled once certain equity levels were reached. Borrowers with lower LTV ratios (90% or less) may still have options to remove MIP once they reach 78% LTV or they refinance. Understanding these changes helps borrowers and mortgage professionals navigate FHA regulations more effectively.